A new statute has been enacted under the Government Program to foster the housing market.
Decree-Law no. 1/2020, of 9 January 2020 which come into force on 10 January 2020, approves and regulates the new long-term housing right, which is an in rem right that foresees the use by individuals of third party’s property as permanent residence and for a lifelong period, against payment of a deposit and a periodic rent.
This new right differentiates from the general rental regimes, by transferring to the holders of the Long-Term Housing Right obligations that are typically imposed on owners, such as payment of the municipal property tax and responsibility for general maintenance and conservation works on the property. The holder of the right is entitled to mortgage same to pay for the deposit. Reversibly owners are granted additional payments and securities – in addition to the initial deposit and monthly consideration, owners are also entitled to an annual fee from the 11th year of contract and until the end of the 30th ; in case of delayed payments or defaults the relevant notices will serve as enforceable title.
The rights must be registered before the Real Estate Registry and shall expire upon the death of the holder (or the last holder in case of multiple holders).
Should you wish to receive additional information on this alert, please contact: